PayPal and Apple cease talks about Apple pay

Reports that PayPal was trying to cozy up with Apple for
its mobile payment system are almost as old as the
rumors about Apple Pay itself. There was reports on the
rumors way back in January , and now a new report from
Bank Innovation (via MacRumors) claims all that work
came to naught. In fact, the veteran Internet payment
company apparently signed a deal with Samsung to
power its own fingerprint payment system for its Galaxy
S5 units.
Apple apparently made the decision to end the talks.
Understandably, PayPal's move incensed the Cupertino
company, and it's said that the partnership with
Samsung led to Apple's surprise decision to exclude
PayPal from the dev kit for Apple Pay entirely.
The deal with Samsung "was reportedly forced onto
PayPal by eBay CEO John Donahoe," the report says.
"PayPal's now-former president David Marcus was
purportedly categorically against the Samsung deal,
knowing that it would jeopardize PayPal's relationship
with Apple. Donahoe won the day, however."
The rift between the two companies seemingly runs deep
now, and its effects were more visibly seen in a recent
PayPal ad in the New York Times (also noted by
MacRumors) that pointed to the iCloud celebrity snafu
as proof of the comparative safety of its payment
service, which greatly resembles Apple Pay in concept.
"We the people," the ad read, "want our money safer than
our selfies." Ouch.
But business may soon get rough for PayPal. Word also
dropped today from CNN that eBay plans to split PayPal
off as its own company again despite recent successes,
which only adds to the clash between Marcus and
Donahoe. And if Apple Pay turns out to be as "cool" as
Apple CEO Tim Cook hopes, PayPal could end up
fighting for its very survival. For its part, eBay (which
still owns PayPal for now) now claims to welcome the
competition from Apple Pay, as reported by
MarketWatch.
"I’m hoping that the recent tokenization and Apple Pay
announcements begin to accelerate the pace of NFC
(near-field communication) adoption. I don’t know if
that will be the case, but if it does, we think that’s a
very good thing for PayPal," John Donahoe said in the
report.